A Rightward Shift of the AD Curve in the Very

question 263

Multiple Choice

A rightward shift of the AD curve in the very steep upper part of the short-run AS curve will

• A) increase real output by more than the price level.
• B) increase the price level by more than real output.
• C) reduce real output by more than the price level.
• D) reduce the price level by more than real output.

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Definitions:

Philosophy Course

An academic class focused on the study of fundamental questions about existence, knowledge, values, reason, mind, and language.

Expectancy-Value Model

A psychological theory that explains motivation by combining individual expectations of success with the value of the success.

Probability of Success

A statistical measure that calculates the likelihood of a desired outcome or successful result happening.

Incentive Value

The attractiveness or appeal of a goal or reward that motivates behavior.